Ends withholding tax requirement
The Russian Federal Law has been amended from 1 October 2021 to introduce the Value Added Tax reverse charge on supplies made by non-residents to Russian businesses within the Russian Federation.
The changes were included in Federal Law No. 305-FZ from the summer.
Previously, a withholding VAT agent mechanism applied. This has a similar effect, with the agent calculating and splitting the VAT element of the supply from the payment to their foreign supplier.
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